汇丰银行-印尼银行业-bank mandiri persero tbk：hold：credit cost driven earnings rebound in 2q17-20170719-hsbc.pdfVIP

19 July 2017   Bank Mandiri Persero Tbk EQUITIES COMMERCIAL BANKS (BMRI IJ) Hold: Credit cost driven earnings rebound in 2Q17 Indonesia Asset quality is clearly on the mend MAINTAIN HOLD BMRI hints at potential capital deployment ahead TARGET PRICE (IDR) PREVIOUS TARGET (IDR) We rate BMRI Hold with an IDR10,900 target price 10900.00 10900.00 SHARE PRICE (IDR) UPSIDE/DOWNSIDE 2Q17 within expectations and earnings should pickup further. After declining steadily from 3Q16 to 1Q17, total income rebounded and rose 2% q-o-q and 7% y-o- 13525.00 -19.4% y. Despite PPoP rising by only 1% q-o-q, net profit was up 32% q-o-q thanks to a big (as of 18 Jul 2017) improvement in credit cost. We consider the results to be in-line with expectations MARKET DATA eventhough annualized net profit is only 82% of our full year forecast as we expect Market cap (IDRb) 315,583 Free float 40% Market cap (USDm)